Tax returns now a trap: H-1B immigrants risk deportation over old side earnings

Tax returns now a trap: H-1B immigrants risk deportation over old side earnings

Even minor infractions, such as traffic violations, are triggering deeper background checks that expose past unauthorized employment.

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Blurred areas now include rental or partnership income, which officers may misinterpret as active employment.Blurred areas now include rental or partnership income, which officers may misinterpret as active employment.
Business Today Desk
  • Sep 9, 2025,
  • Updated Sep 9, 2025 10:00 AM IST

Immigrants in the U.S. holding H-1B and other temporary visas now face heightened deportation risks as the IRS shares tax data with immigration authorities—turning past tax returns into evidence of unauthorized work, according to The Times of India.

For years, visa enforcement largely depended on direct immigration checks. But attorneys now report a new trend: income disclosed in old tax filings—particularly side jobs taken while on student or work visas—is being flagged by Immigration and Customs Enforcement (ICE) and U.S. Citizenship and Immigration Services (USCIS).

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“We are starting to see people getting charged for unauthorized work—work they actually reported and paid taxes on,” immigration attorney Jath Shao was quoted as saying in a The Times of India report. He noted that immigrants are being questioned at consulates and ports of entry over earnings made years earlier.

Even minor infractions, such as traffic violations, are triggering deeper background checks that expose past unauthorized employment, Shao added.

Experts link the trend to the “Extreme Vetting” framework introduced under the Trump administration, which expanded monitoring of visa holders beyond issuance. They caution that even small violations could now lead to denials or deportation.

Legal specialists also note that notices are increasingly being issued on the basis of side income reported in tax filings. In many cases, such earnings are treated as status violations—potentially triggering removal proceedings or problems at ports of entry during travel.

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Traditionally, Schedule C income—such as freelance consulting or ridesharing—was most closely scrutinized. But according to attorney Karin Wolman, blurred areas now include rental or partnership income, which officers may misinterpret as active employment.

Law firms are advising strict caution. Even minimal side earnings, experts warn, can undermine visa renewals, trigger inadmissibility, or spark deportation—leaving many immigrants caught between compliance with tax law and the risk of immigration penalties.

Immigrants in the U.S. holding H-1B and other temporary visas now face heightened deportation risks as the IRS shares tax data with immigration authorities—turning past tax returns into evidence of unauthorized work, according to The Times of India.

For years, visa enforcement largely depended on direct immigration checks. But attorneys now report a new trend: income disclosed in old tax filings—particularly side jobs taken while on student or work visas—is being flagged by Immigration and Customs Enforcement (ICE) and U.S. Citizenship and Immigration Services (USCIS).

Advertisement

Related Articles

“We are starting to see people getting charged for unauthorized work—work they actually reported and paid taxes on,” immigration attorney Jath Shao was quoted as saying in a The Times of India report. He noted that immigrants are being questioned at consulates and ports of entry over earnings made years earlier.

Even minor infractions, such as traffic violations, are triggering deeper background checks that expose past unauthorized employment, Shao added.

Experts link the trend to the “Extreme Vetting” framework introduced under the Trump administration, which expanded monitoring of visa holders beyond issuance. They caution that even small violations could now lead to denials or deportation.

Legal specialists also note that notices are increasingly being issued on the basis of side income reported in tax filings. In many cases, such earnings are treated as status violations—potentially triggering removal proceedings or problems at ports of entry during travel.

Advertisement

Traditionally, Schedule C income—such as freelance consulting or ridesharing—was most closely scrutinized. But according to attorney Karin Wolman, blurred areas now include rental or partnership income, which officers may misinterpret as active employment.

Law firms are advising strict caution. Even minimal side earnings, experts warn, can undermine visa renewals, trigger inadmissibility, or spark deportation—leaving many immigrants caught between compliance with tax law and the risk of immigration penalties.

Read more!
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